Detroit's Services Could Be Reduced, Its Union Contracts and Pensions Altered

Detroit filed for bankruptcy protection on Thursday under Chapter 9 of the U.S. Bankruptcy Code. Here is an explanation of what that means.

Q: What is Chapter 9?

A: Chapter 9 is a bankruptcy-protection filing specifically for municipalities so they can develop and negotiate a plan to adjust their debts, according to the U.S. Courts website. A municipality can't file for Chapter 9 relief unless the state permits the filing. Detroit's emergency manager, Kevyn Orr, recommended bankruptcy, and Michigan Gov. Richard Snyder authorized the filing.